MMTC:TO PARTAKE IN INDIA'S
AGRICULTURE PROGRESS
By Dr B C Mallik, Director (Marketing), MMTC LIMITED

India has seen a tremendous growth in agricultural development over last three decades. While the country had to import food grains earlier, it has emerged today as an exporter, with annual food grain production now exceeding 190 million tonnes. A package of improved farm technology in which increased use of chemical fertilisers has played a pivotal role, has helped the acheivement of this phenomenal growth. Yet, with the ever-growing population, it becomes imperative that India should continue getting higher yields from agriculture. In this effort fertilisers have to play an even more important role. While indigenous fertiliser production capacity has registered significant increase, India still needs additional quantities to meet the requirement. And fulfilling this requirement through imports, is one of India's premier international trading organisations- MMTC Limited.

MMTC - playing a vital role
Conceived in 1963 as a canalising agency for the export of minerals like iron ore and the import of vital agricultural and industrial inputs, MMTC has today grown into one of the biggest international trade corporations in the third world - having trade links with more than 80 countries around the globe. Its operations cover a wide range of products ranging from minerals, metals and fertilisers, agro products to diamond, gold, gems, jewellery and engineering goods, and en-compass diverse activities ranging from direct buying and selling to joint ventures and development of resources. The policy of economic reforms adopted by the government since 1991 resulted in decanalisation of large number of items of MMTC's trade resulting in loss of 80% of traditional business. This has necessitated a redifinition of business, re-engineering of the corporation and its style of functioning.In a new liberalised environment MMTC has emerged as a competitive open market player making a strong thrust towards broad basing its activities, tapping new markets for exports, consolidating our existing lines of businesses and setting up of several joint ventures in the fields of marine and agro products. MMTC is also setting up a mega 1.1 million TPA Steel Project Neelanchal Ispat Nigam Limited (NINL) and a .882 million TPA Met-coke project, Konark Metcoke Limited in the state of Orissa.

The main function of the corporation relating  to a fertiliser are import of urea (canalised item) import and distribution of fertiliser and raw material(sulphur) expansion of domestic marketingnetwork on all India basis.

The company's country-wide domestic network is spread over 85 regional, sub-regional, port and field offices, ware houses and procurement centres. MMTC's international trade network which includes 2 foreign offices in Tokyo and Dubai and 1 international subsidiary in Singapore Spans in Asia, Europe, Africa, Oceania and Americas giving MMTC a global market coverage. Our comprehensive infrastructure for bulk cargo handling, well developed arrangements for road and rail transportation, ware housing, port and shipping operations gives MMTC complete control over trade logistics, both for exports and imports of over 12 million MT of bulk products annually. Round the clock supervision of all our activities is manned by over 1000 experiences and specialised personnel. MMTC Limited is a major global player in the minerals trade with a turn-over of around US $ 1.2 Billion and the single largest exporter of iron ore, manganese ore, chrome ore and other minor minerals from India. Besides being the world's second largest importer of fertilisers and the biggest in India, MMTC has become a major fertiliser marketing company in India offering both finished and un-finished fertilisers like DAP, Urea, MOP, Rock Phosphate and Sulphur. The corporation entered domestic distribution of imported fertiliser through a network of about 350 distributors and 10,000 outlets in 15 states. It has already made inroads into the fertiliser trade in Punjab, Haryana, UP, Rajasthan, Maharashtra, Tamil Nadu and West Bengal among others.In this market segment MMTC is competing with IFFCO, KRIBHCO, NFL, SPIC and Indo-Gulf Fertiliser and the corporation have enjoyed 20 percent of the total imported fertiliser market. The main function of the corporation relating to fertiliser are-

•  Import of Urea (canalised item)
•  Import and distribution of fertiliser and raw material (sulphur)
•  expansion of domestic marketing network on all India basis

The imports of urea were undertaken as per the authorisation and arrival schedules given by the Department of fertiliser, and MMTC could ensure timely deliveries of urea in a highly uncertain international market. Secondly, MMTC continued to be market-leader in purchase and distribution of sulphur. Thirdly, domestic marketing efforts expanded suitably covering pool urea, SSP, MOP and DAP by opening of more than 150 godowns-cum-distribution centres spread throughout India. Keeping in view of the liberalised economic scenario, the commodity-wise analysis and the targets within fertiliser group of the corporation is as under :

DAP
India was importing roughly 2 million tonnes of DAP every year. However, due to increase in price the imports have come down to approximately 1.6 million tonnes. MMTC has started domestic distribution of DAP in a modest way in 1994-95 and is establishing marketing network of undertaking domestic distribution of fertiliser. The target it has set up is around 25% of market share by 1999-2000, making MMTC as one of the top three importers for sale in domestic market.
MOP
India has no reserve of potash. Entire demand is made through imports. India imports about 1.2 to 1.8 million tonnes of potash every year. MOP is used both for direct applications by farmers and for making NPKs by mixing plants. The annual requirement of mixing plant is around 5 lakh tonnes. Balance is utilised by farmers.
SULPHUR
India is importing around 1.5 million tonnes of sulphur every year. Entire demand is made through imports. MMTC is importing sulphur for domestic distribution and intend to capture 35% of the market share by 2000 AD.
Other Fertilisers
Once the domestic distribution network is in position, MMTC is exploring possibilities of other fertilisers like ASP, NPK, SSP etc. both for domestic as well as for export.
Domestic Trade
In 1995-96 MMTC entered into arrangements whereby it is functioning as handling-cum-sales agency for pool urea landing at Kandla and Madras ports. Generation of counter trade is mainly against import of fertiliser consequent upon decanalisation of various fertiliser items, generation of counter trade has gradually come down. Before that, there was no generation of counter trade against import of fertiliser as it was a seller's market. Even then all-out efforts were made to make counter trade exports. MMTC has made the maiden venture in Exporting fertilisers to Nepal and Bangladesh.The corporation gives support to sick domestic SSP manufacturing industry by providing necessary inputs and taking inished product for domestic distribution and export. It has already undertaken trial exports to Bangladesh. MMTC also entered into domestic distribution of urea by making arrangements for supply of over 4,50,000 million tonnes of urea. In its constant endeavour to help the Indian farmer to get the best fertiliser input, MMTC's quest is ongoing. To find newer supply sources, establish contact and explore beneficial means for importing the country's requirements of finished fertilisers-urea, DAP, MOP, and fertiliser raw materials, eg. rock phosphate and sulphur.So that, while the farmer is constantly engaged in giving the country food, MMTC is involved in a continuous search to help provide food for the soil.